CO129-625-6 Hong Kong University- endowment fund 1-5-1951 - 30-9-1951 — Page 71

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control should be imposed on the University's spending, which would be undesirable.

6.

The Governor therefore proposes that the Hong Kong Jockey Club should contribute $2 million to be matched by an equal sum from the Hong Kong Government and that H.M.G. should contribute an amount equal to that raised in the Colony, i.e. $4 million (or £250,000).

7. At a meeting in the Colonial Office on the 16th July, Sir A. Morse, Sir M.K. Lo and Mr. T.N. Chau, members of Hong Kong Executive Council, felt that :-

(a) H.M.G. has some moral obligation to see the University established on

a sound economic basis;

(b)

any reduction of the University's activities would be interpreted in Hong Kong as a clear indication that H.M.G. had no confidence in its ability to stay there or in the Colony's future;

(c) such a course would have a profound effect on British prestige

generally in view of Hong Kong's position as an outpost and shop window of British democratic institutions.

8.

The present position is that the Governor has been asked to consider whether the Japanese assets in Hong Kong (about £1 million) could be used for the establishment of the Endowment Fund. He has now replied that the Unofficial Members have been consulted and agreed that $12,000,000 (£750,000) of the Japanese assets could be used for this purpose on the conditions given in his telegram below.alove

23. 7. 1951.

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